The Global Financial Crisis is a Hoax.

In what will come as a bit of a surprise, to say the least, there is a growing voice originating from the USA, that, if evidence is anything to go by, can longer no be ignored – “The Global Financial crisis” has been nothing other than a media beat-up or an elaborate hoax.

In sharp contrast to the relentless doomsayers and economic pessimists, Successful US investor Jack Miller maintains that the global economy is on the brink of a major resurgence.

All world stock markets are raging. The US economic recession has been a severe blow to the world. Financial analysts say that the USA is the main reason behind all financial problems in the world. Many of them say that it is only the beginning of the crisis.

However, other specialists simply laugh at those who panic. They believe that there is no recession in the US and there cannot be any. Nevertheless, they see a positive side about the present panic: best shares in the world are now available at very low prices, which is an extremely low occasion.

Successful U.S. investor Jack Miller feels certain about it. He receives great profits from fluctuating markets and recalls US post-war history of the USA.

During the past 50 years the USA suffered eleven crises acknowledged as recessions. They were caused by significant factors, and their consequences were much more serious than the present ones.

The 1945 recession was caused by the end of World War II, from which the American industry profited openly. The war ended, and former soldiers turned into the unemployed. Later the American economy suffered from the Cold War (together with expectations of the nuclear apocalypse), the Korean and Vietnam Wars, which was disastrous for the USA.

The rising prices of oil created economic crises in the USA in 1973-1974, 1979-1980 and 1981-1982. The recessions in 1990-1991 and 2000-2001 were associated with the investment crisis, or in other words, with the unjustified hopes of investors.

Peculiar features of recession include the rising unemployment factor and the decline of production.

The previous crisis between the two centuries (which is considered a mild crisis) was characterized with the six-percent reduction of the industrial output. The current situation shows that the production in the past quarter increased by two percent, it did not drop at all.

Jack Miller also calls attention to the unemployment rate. A rise in unemployment by basis points (up to five percent) at the end of 2007 caused a drop in stock markets before the New Year holidays. However, everyone chose to forget that for the past 50 years the average unemployment rate equaled 5.6 percent, and during the crisis it fell up to 7.6 percent at the most.

This cannot be considered a recession, claims Jack Miller looking at the fundamental rates. The air traffic performance is rising, which the investor considers to be the major index of the economic and consumer activity.

Experts say that the expectance of falling consumer costs is the factor of the forthcoming recession. It resembles the statement that the general hankering for diets will urge the average American to lose ten kilograms, says Miller.

Personal incomes rise as jobs increase. We can hope for that due to the rising industrial production.

Miller associates the present fluctuations on the world stock markets with usual economic cycles. The overheated economy of China and oil-making countries is slowing down, which means we are about to experience another rising cycle. Jack Miller recommends buying cheap shares right now, because soon their prices will restore.

Actually, the USA seems to benefit from this recession that “never happened”. As we have already been assured, the fundamental economy indexes are going up. However, the Fed cut its rates down to 3.5 percent and caused unusual global approval. It may cut them down to 2-2.25 percent, thus giving American businesses and consumers very cheap credits.

Besides, such action will inevitably result in the weak dollar (now it remains in the pre-crisis against other currencies, and this makes the US currency required) and in great advantages for foreign exporters.

Already now the US export-oriented companies are counting new profits. Thanks to the cheap dollar, the US economy managed to first start reducing the foreign trade deficit. It should be mentioned that the USA could not redeem the credit balance of the foreign trade.

Everything leads us to believe that the USA will overcome this crisis, or recession whatever, and will become even stronger than a year ago. At least it looks set to suffer fewer losses than the rest of the world.

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24 Responses

  1. Thank God for that! Phew, for a moment there I thought we were in trouble (wink)

  2. Great news Reb.

    Psst. How come Pravda is the only one speaking the ‘truth’. 😉

  3. The media are pretty damned good at this stuff.

    Recession – are we there yet?
    http://business.smh.com.au/business/recession–are-we-there-yet-20090302-8m3y.html
    The Australian economy probably went backwards in the last three months of 2008 after a key measure slumped, adding to the likelihood of more rate cuts as the Reserve Bank battles to avoid a recession.

    Politicians have bickered for months over whether Australia’s economy would dodge the downturn that’s crippling the economies of most of the country’s major trading rivals. That debate might be over.

    To cope with shrinking demand, local companies are cutting jobs. Pacific Brands last week announced it would shed 1850 staff and the Melbourne unit of car parts maker Robert Bosch’s statement today that it may lop 170 positions. As many as 300,000 jobs may go over the next year or so, according to TD Securities economist Stephen Koukoulas.

    The number that’s got analysts spinning today, though, is a big reduction in the stockpiles companies hold. That’s a warning that companies are cutting back, wary that demand will retreat. In combination with a 6.5% reduction in company profit for the December, the figures are a blow for hopes the economy will sidestep a recession.

  4. Tony, on March 2nd, 2009 at 4:23 pm Said:

    Great news Reb.

    Psst. How come Pravda is the only one speaking the ‘truth’. 😉 ”
    He’s a bit of a lone wolf Tony, and this is probably the most elaborate and successful hoax ever devised. I’m impressed.

    Joke’s over back to work.

  5. What disappoints me Reb is Buffett’s inability to pick on the hoax.

    Warren Buffett’s worst year ever
    http://www.theaustralian.news.com.au/business/story/0,28124,25123613-643,00.html
    LIKE a wise, friendly uncle dispensing advice in the quiet corner of the room, legendary investor Warren Buffett has been someone to rely on in good times and bad.
    Warren Buffett’s worst year

    “In poker terms, the Treasury and the Fed have gone ‘all in’.” Warren Buffet on the financial crisis.

    But this year the Oracle of Omaha is feeling the pain like everyone else, posting his worst year ever in a stellar 44-year track record.

    He is warning of more pain to come.

    “We are certain,” Buffett says, “that the economy will be in shambles throughout 2009 — and, for that matter, probably well beyond.”

  6. Tony,

    My “other sources” demanded to remain anonymous.

    Isn’t pravda a credible enough source??

    They have this other article that I was going to comment on.

  7. Can anyone tell me how Sweden is travelling during the current crisis ?

  8. Reb,

    Yes I’ve always rated Pravda highly. This article is one of my favourites.

    Pravda. Speaking truth to power.

  9. Raking over the 2020 summit I notice that the gathering of the best and brightest minds in Australia didn’t raise any flags about a looming financial storm. That’s good enough for me.

  10. Someone had better hurry up and let all these holden workers know that it is all a mirage.

    They might become concerned otherwise.

    Thanks for the link to the site Reb, I needed a good laugh.

  11. So we’re all in buy mode?

    Good.

    I’ve got a few bits and pieces to off load, looking for buyers.

  12. “What disappoints me Reb is Buffett’s inability to pick on the hoax.”

    The explanation is simple John.

    That’s because you’ve got your ear permanently tuned to all stations that are spouting “the end is nigh” bad news.

    Meanwhile:

    – interest rates at record lowes (no pun intended)
    – falling petrol prices
    – falling grocery prices
    – unemployment at less than 10%

    wot more do you want? A govt cash handout?

    Oh hang on, I think there’s one on the way…

  13. Lol -Reb and all the the result of an economic downturn. Interest rates may yet reach zero if this keeps up. People cut unnecessary spending, millions losing their jobs worldwide and excess inventories get sold off at lower prices bla, bla, bla It’s a supply – demand thingy

    Tom of Melbourne, on March 2nd, 2009 at 6:05 pm Said:

    So we’re all in buy mode?

    Good.

    I’ve got a few bits and pieces to off load, looking for buyers.”

    Go Tom!

  14. My advice to you Reb is to put all the money you have into shares Now! Don’t hesitate. You’ll be a very wealthy person by 2010 or not.

  15. What data? Bloody panic merchants!

    Shares tumble to a five-year low

    AUSTRALIAN shares closed at a five-year low as investors slashed bets that the Reserve Bank would cut interest rates tomorrow.

    The All Ords finished 93.1 points, or 2.82 per cent lower, at 3203.8, its lowest level since 2003.

    The All Ords finished 93.1 points, or 2.82 per cent lower, at 3203.8, its lowest level since 2003.

    Investors also worried about weaker-than-expected data on company profits indicating the domestic economy might have shrank in the final quarter of 2008.

  16. sreb

    – interest rates at record lowes (no pun intended)

    Ta, sreb, what do you think I live on – air?

    – falling petrol prices)

    not in my neck o’ the woods $1.20 and we get an 8 cent subsidy in Queensland (ho, ho, ho)

    – falling grocery prices)

    you obviously don’t shop in Brisbane

    – unemployment at less than 10%)

    and that’s important because?

    wot more do you want? A govt cash handout?

    no government handouts in the household (ever BTW)

    Spare a thought for the SFR – no spare cash to buy “cheap’ shares and now living off the capital that should have generated income to live off.

    I’ll just go out and get a job (haven’t worked for three years, over 60, ran my own business for 16 years) what d’yer reckon my chances are?

  17. TB

    ” – interest rates at record lowes (no pun intended)

    Ta, sreb, what do you think I live on – air? ”

    And risk of them going lower seems to be increasing, not a good thing at all TB. Especially for self-funded retirees that rely heavily on interest payments for their income from investments.

  18. Very interesting article reb

    Comment: Cash splash shaping as a fizzer
    By Mark Westfield*, ninemsn Money,
    26 February 2009

    Prime Minister Kevin Rudd and his embattled Treasurer, Wayne Swan, are betting their government’s fate on the “cash splash” and roof-insulation subsidies they are throwing at sensitive voter groups, but as each day delivers more bad news the stimulus is shaping as a fizzer. Australians should brace for the worst. “

  19. A link might be useful

    Comment: Cash splash shaping as a fizzer
    By Mark Westfield*, ninemsn Money,
    http://money.ninemsn.com.au/article.aspx?id=757777

  20. “you obviously don’t shop in Brisbane”

    Clearly.

  21. reb, on March 2nd, 2009 at 7:32 pm

    LOL! 😆

    spilt me WT – yer bugger!

  22. Reb

    I think this hoax has gone too far now

    Insurance giant AIG reveals record $US62b loss
    http://business.smh.com.au/business/world-business/insurance-giant-aig-reveals-record-us62b-loss-20090303-8mkh.html
    March 3, 2009 – 7:14AM

    Insurer AIG revealed the biggest loss in US corporate history on Monday, as the US government said it would provide another $US30 billion in assistance for the troubled giant.

    “AIG’s results in the fourth quarter were negatively affected by continued severe credit market deterioration,” the company said in a statement.

    It said its net loss for 2008 was $US99.3 billion, with a net loss of $US61.7 billion in the fourth quarter alone.

    The US government stepped in to say it would provide the insurer, which has already been partly nationalised in a rescue worth more than $US150 billion, with another $US30 billion in exchange for preferred stock.

    “The Treasury Department will create a new equity capital facility, which allows AIG to draw down up to $US30 billion as needed over time,” the Treasury Department and Federal Reserve said in a joint statement.

    “Given the systemic risk AIG continues to pose and the fragility of markets today, the potential cost to the economy and the taxpayer of government inaction would be extremely high,” the statement said.

    AIG continues to face “significant challenges, driven by the rapid deterioration in certain financial markets in the last two months of the year and continued turbulence in the markets generally,” it added.

    “The additional resources will help stabilise the company, and in doing so help to stabilise the financial system,” the government argued.

  23. Great article there Reb! That is very funny! Some people don’t know reality even when it stares them in the face.

  24. Tom R, on March 2nd, 2009 at 5:50 pm Said:

    Someone had better hurry up and let all these holden workers know that it is all a mirage.

    Those 1850 Pacific Brand workers will also be overjoyed to know it’s all been a jolly jape and they can ignore the pink slip with DCM written on it!

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